While the current market situation is on the bearish side, NFT games are currently booming in popularity. Axie Infinity is an NFT pet game that has increased its value twenty times over the last few months, becoming one of the biggest earners in crypto.
Axie Infinity has almost half a million daily players, beating protocol earning records and beating top cryptocurrencies Ethereum and Bitcoin. This phenomenon has taken the Philippines by storm, with the game’s user base made up of 60% of Filipino users.
Explosive altcoins are nothing new in crypto, with the rise of several new coins over the past year surprising even the most bearish of speculators. Dogecoin is perhaps the greatest riser of 2021, emerging from memedom to become a well-respected altcoin supported by none other than Elon Musk.
Nonetheless, the fact that Axie Infinity is still in the Alpha stage makes it’s huge success all the more surprising, and suggests that the game will gain further traction as it continues to grow. Currently standing as the highest-grossing decentralized application (DApps) on record, Axie Infinity’s growth bucks the current market trends, which has seen an overall loss of $300 billion in overall market cap in the past month alone.
However, not everyone sees the altcoin with rose-tinted spectacles. Crypto trader and analyst Van de Poppe believes that traders need to be very careful in how and when they choose to invest in this type of altcoin:
“The risk, or the downside, is significant with chasing a coin like this… This is way too overextended.”
He adds that AXS seems to be overbought, and traders risk a “potential heavy loss” if they choose to enter the market. But adds that AXS will “ultimately correct”.
Other metaverse projects such as the Sandbox have taken decentralized gaming to new levels, built on blockchain-based nong-fungible tokens, and bringing a new type of gaming experience to the market.
Blockchain-based trading and battling games is just another example of the way the space is constantly innovating, and making way for new and exciting ventures. The popularity of these altcoins are not to be doubted, however it is easy to call into question the longevity of popular meme coins and altcoins. Who, as we have seen time and time again, can fall just as quickly as they can rise.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.